ArmInfo.The total net profit of insurance companies in Armenia for 2020 jumped 4.6 times (against a growth of 6.4 times in 2019), exceeding 4.4 billion drams or $ 8.5 million. According to the Financial Rating of Armenian insurance companies prepared by ArmInfo IC, this was observed against the background of deterioration of the annual dynamics of both premiums and reimbursements, the former being less significant than the latter.
Thus, insurance claims decreased in 2020 by 13.2% with a decline in premiums by 2.6%, against growth a year earlier in both cases - 14% and 11%, respectively. Out of 6 insurance companies, a decline in premiums was recorded in four, and in indemnities - in five, and the only insurance company that kept indemnities in growth, with a slight slowdown, was RESO; on an annualized basis (2020 to 2019), four ICs increased their profits, and two came out of the loss to a serious positive level.
On a quarterly basis, the net profit of insurers continues to decline, but already at a slower pace - by 36.7% in the IV quarter, against a 72.6% decline in the III quarter, having remained at a positive level, against the background of a significant increase in claims with a moderate increase in premiums ... As a comparison, we note that a year earlier (in 2019) in the 4th quarter the profit dynamics was also downward, but looked more modest, namely, from 34% in the 3rd quarter, the decline slowed down to 26.5% in the 4th quarter, keeping the indicator at a positive level at the background of the recession of indemnities with the acceleration of the growth of premiums.
The first place in terms of net profit for 2020 was taken by IC "Nairi Insurance" - 1.4 billion drams (annual growth of 3.3 times), IC "INGO Armenia" moved up to the second place - 1.3 billion drams (annual growth of almost 5 times ), and the third place is occupied by "Armenia Insurance" IC - 1.2 billion drams (3.8 times annual growth). The fourth place was taken by Rosgosstrakh Armenia IC with a profit of 339.9 million drams (an annual growth of 8.3 times, with an exit from the loss). The fifth position is occupied by RESO IC with a profit of 180.1 million drams (an annual growth of 20.4%). Seal Insurance IC closes the list of insurance companies in terms of profit - 41.4 million drams (annual growth by 2.3 times with an exit from the loss).
A more significant decline in indemnities rather than premiums accelerated the growth of insurance profit in 2020 to 13% from 6.7% in 2019, to the level of 20.3 billion drams. Moreover, on a quarterly basis, this figure reached 65% growth from a 10.7% decline in the third quarter. Insurance profit for 2020 was the leading one for INGO Armenia IC - 6 billion drams (with an annual decline of 6.6%), in second place - Rosgosstrakh Armenia - 5.1 billion drams (with an annual growth of 2.6 times), and the third position was held by Nairi Insurance IC - 4.2 billion drams (with an annual growth of 26.2%). The fourth position is taken by "Armenia Insurance" IC - 1.9 billion drams (with an annual decline of 4.1%). The fifth and sixth positions in this indicator are occupied by IC RESO and IC Seal Insurance - 1.7 billion and 1.5 billion drams, respectively (with an annual decline of 35.1% and 12%).
It should be noted that 6 companies operate in the insurance market of Armenia, which out of the available 20 classes of insurance operate in 17, except for insurance of railway transport and liability from its use, insurance of judicial and extrajudicial expenses. Since the second quarter of 2020, the insurance class for agricultural risks has been added to the UK reports, but it is not added to the final indicator, since it is taken into account in two other types of insurance: property against fires and natural disasters; property from other damages. In terms of the largest number of classes, INGO Armenia IC is licensed - 16 and Rosgosstrakh Armenia IC - 15. (The estimated exchange rate of the dram to the dollar as of 31.12.20 was 522.59 AMD / $ 1).